Permanent Residence, Business Visas and Retirement Visas: Thresholds, Amounts and Lapse Clauses

Permanent Residence, Business Visas and Retirement Visas: Thresholds, Amounts and Lapse Clauses

Every route under sections 26 and 27, the R5 000 000 business investment and the 60% local-employee ratio, the R12 000 000 financially-independent threshold, the conflict between official sources on the retirement income figure, and the provisos that can cause a permit you have already been granted to lapse.

A permanent residence permit confers on its holder "all the rights, privileges, duties and obligations of a citizen" — save for those expressly reserved for citizens by law or by the Constitution (section 25(1)). It is the highest status South African immigration law can give a foreigner. The price is this: adjudication is measured in years, the financial thresholds in millions, and the lapse clauses are hidden in a handful of unremarkable-looking provisos — enough to cause a permit awaited for two years to be lost again after it is in hand.

Part 1 — The two main branches: sections 26 and 27

Section 26 is direct residence, on the logic of "you are already here, and you have been here long enough". Section 27 is residence on other grounds, on the logic of "you bring something South Africa needs". The opening words of section 27 add a further qualification — the applicant must be "a foreigner of good and sound character".

The two-year observation period under section 26(b), and the interview you must attend. The proviso reads that if, at any point within two years of the issue of the permit, the good-faith spousal relationship ceases to exist, the permanent residence permit lapses — except where the spouse has died. Paired with this is regulation 23(6): the permit holder must attend an interview at any office of Home Affairs during the last six months of the second year after the permit is issued. This interview is often treated as a formality and missed, but it is the pivotal point on which the permit's continued security turns.

Two drafting defects worth knowing about, but not worth acting on. First, the current text of section 26(c) contains both "under the age of 21" and "turned 18 years of age" — this is a drafting defect left behind when the 2011 Amendment Act replaced the wording in a sweeping fashion, not a printing error. Second, section 27(a)(ii) points to section 19(1), and section 19(1) has been deleted, so that cross-reference is now void. When these two provisions arise, the practical course is to confirm on the facts of the individual case which standard Home Affairs applies, rather than assuming.

Part 2 — General documents and process for permanent residence

General requirements under regulation 23:

1. Form 18 (DHA-947), which must be lodged in person — regulation 23(1).
2. Application fee — R1 520. But the three categories of s 26(b) spouse, s 26(c) minor child and s 27(d) refugee are expressly excluded — that is, exempt from this application fee (GN R.7834, effective 17 August 2026).
3. Certified copy of the applicant's birth certificate.
4. Biometrics (fingerprints and photograph) — for applicants over 16.
5. Police clearance certificate — for every country in which the applicant has resided for 12 months or more after turning 18; not older than 6 months at the time of submission.
6. Medical and radiological reports — children under 12 and pregnant women are exempt from the radiological report.
7. Documents for accompanying or joining minor children — under regulation 9(1)(d).
8. Marital-status / spousal-relationship documents — under regulation 3(2).
9. Birth certificate for each dependent child.
10. A deed poll for anyone who has changed their name or sex.
11. In-country applicants: each applicant must hold a valid temporary residence visa — regulation 23(2)(k).

Submission from abroad (regulation 23(4)) must be made to one of the following: the South African mission in the applicant's country of habitual residence; the South African mission in the country that issued the valid passport held; or the mission designated by the Director-General to receive applications from neighbouring countries.

Regulation 23(3): permanent-residence documents must be apostilled. The birth certificate, police clearance certificate, child-related documents, marriage or spousal-relationship documents and deed poll must be originals, or copies apostilled by the issuing authority in the country of origin; and must (where applicable) be translated by a sworn translator into one of South Africa's official languages, with that translation certified as correct. China has been party to the Hague Apostille Convention since 7 November 2023, with the competent authorities being the Ministry of Foreign Affairs and 31 authorised local foreign-affairs offices; verification is available online at consular.mfa.gov.cn/VERIFY/. But the provision requires the apostille to be affixed "by the issuing authority", whereas Chinese practice is generally to apostille the notarial certificate; whether this practice is accepted by Home Affairs is, at present, not the subject of any written guidance. This is the point that Chinese applicants most need to confirm in advance.

The sample for business permanent residence is very small: in Q2 of 2025/26 only 20 applications were received, of which 4 were processed within 8 months.

Part 3 — Section 27(b) special-skills permanent residence: the Act says "extraordinary", the regulation says "critical skills"

The statutory wording of section 27(b) is "extraordinary skills or qualifications". But regulation 24(3) equates it with "falling within the critical skills category". This translation is crucial: it means that the real threshold under section 27(b) is not "extraordinary talent" in the literal sense, but a set of objective conditions that can be checked item by item.

Evidence required under regulation 24(3):

1. Proof of falling within the critical skills category — (i) a certificate confirming skills or qualifications from the professional body, board or council recognised by SAQA under section 13(1)(i) of the National Qualifications Framework Act; (ii) where required by law, a registration certificate from that body.
2. Proof of at least five years of post-qualification work experience — this is the most substantive threshold under section 27(b).
3. A reference letter from a former employer plus a complete CV.
4. A motivation letter — explaining how the critical skills the applicant possesses will benefit the field in which they intend to work in South Africa. In practice this letter carries more weight than applicants tend to expect.

Current Critical Skills List: GN R.3934, Government Gazette No. 49402, 3 October 2023.

The greatest advantage of section 27(b): no five-year work-visa precondition. Compared with section 26(a) (which requires five years on a work visa) and section 27(a) (which requires the advertising test to be completed), section 27(b) allows a direct application. A holder of a Critical Skills work visa need only satisfy the five-years-of-post-qualification-experience requirement, without first serving out five years on the visa. For professionals whose occupation is on the list, this is usually the shortest route.

Part 4 — Business visa (section 15) and business permanent residence (section 27(c))

• R5 000 000 — minimum capital contribution
• 60% — local-employee ratio
• R1 520 — application fee

GN 560, Government Gazette No. 37837, 15 July 2014: R5 000 000,00 in cash, which must originate from outside the Republic; the capital-contribution portion must be in the form of new machinery and/or equipment. This Notice was made under section 15(1)(a) and section 27(c) read with regulation 14(1)(a), (2)(a) and regulation 24(5)(a), (b), so the same amount applies to both the business visa and business permanent residence.

For investment into an existing business, s 15 additionally requires the financial statements for the previous financial year and proof of investment (reg 14(3)); s 27(c) requires audited proof of investment for the previous financial year (reg 24(8)), and where investing as a partner, a partnership agreement must also be submitted (reg 24(9)).

Special note for Chinese applicants: the accountant must be registered in South Africa. Regulation 24(4) and regulation 14(1)(a), (2)(a) all specifically require a chartered accountant registered with SAICA, a professional accountant registered with SAIPA, or a business accountant registered with SAIBA. A report issued by a Chinese accounting firm does not meet the requirement of the provision and can serve only as supporting working papers for the report issued by that South African accountant. In addition, GN 560 expressly requires the funds to "originate from outside the Republic" — a complete evidentiary chain for the cross-border funds route is the most labour-intensive part of this kind of application.

Which industries are not accepted, and which may have the capital requirement reduced

There is a separate list of undesirable industries for the corporate visa (s 21) (GN 563), the contents of which differ: adult entertainment, the hospitality and catering industry, fast-food outlets and franchises, and the beauty industry. Do not mix the two.

A legal grey area worth clarifying at the planning stage. On its wording, the undesirable-industries list under section 15(1A) binds only the business visa and the corporate visa; there is no corresponding statutory provision for section 27(c) business permanent residence. But because section 27(c) expressly defines its business activity by reference to activity "as contemplated in section 15", Home Affairs is in practice likely to apply the list to it as well. The Department's formal position has not been made public. If the direction of investment falls at the edge of these three categories, it is advisable to obtain advice on the specific case before committing funds.

Part 5 — Retirement: the section 20 visa and section 27(e) permanent residence

Key points for the retirement routes:

• s 20 retired persons' visa: s 20(1) requires proof that a pension, an irrevocable annuity or a retirement account "from the country of his or her origin" provides the prescribed minimum payment for life; or the prescribed minimum net worth. s 20(2): the Director-General may authorise a retirement-visa holder to work. s 20(3)(b): the visa is valid for a period not exceeding four years, renewable one or more times on expiry.
• s 27(e) retirement permanent residence: two routes — (i) a pension / annuity / retirement account providing the prescribed minimum monthly payment for life; or (ii) the prescribed minimum net worth.
• What the net-worth route really means: the wording of regulation 24(11) and regulation 19(2)/(3) is consistent — the net worth must be a portfolio of assets capable of realising that amount each month. It is not a simple threshold on total assets. The case must be argued by presenting the cash-flow-generating capacity of the assets, not merely by stating a total figure.

Monthly income threshold: the official sources conflict. The South African Consulate-General in Toronto and the Embassy in the USA (May 2024 documents) both state R37 000 per month; while the South African Embassy in Copenhagen's November 2025 document states R38 000 per month. Regulation 19(2)/(3) and regulation 24(11) both provide that this amount is fixed by the Minister by notice in the Gazette, but we have been unable to locate the original Gazette. Recommendation: plan prudently on the basis of R38 000, and confirm in writing with the receiving mission before submission (to be confirmed with DHA / the receiving office). Do not assert a single figure in a formal document.

Part 6 — Section 27(f) financially-independent permanent residence

Financially-independent permanent residence:

• Minimum net worth: R12 000 000 (the Home Affairs website and the South African Embassy in the USA's document agree).
• Once-off payment: R120 000, payable upon approval of the application (reg 24(12): "paid upon approval").
• Verification status: regulation 24(12) expressly requires the amount to be fixed by the Minister by notice in the Government Gazette, but we have been unable to locate the number and date of that Gazette. At present the figures can only be corroborated by the Home Affairs website and mission documents (the R12 000 000 / R120 000 Gazette has not been located — to be confirmed with DHA / the receiving office). If used in a legal opinion, it is advisable to request the Gazette number directly from Home Affairs.
• Matters to be confirmed: whether the R120 000 is inclusive of VAT, and whether it is charged separately per applicant (including accompanying family members), cannot be verified from any official source.

Part 7 — After it is granted: permanent residence can also be withdrawn

The wording of section 28 is "The Director-General may withdraw…" — this is a discretionary power, not automatic lapse. This distinction matters greatly in practice: withdrawal is an adverse decision within the meaning of section 8(3), must be accompanied by reasons, and may be appealed under sections 8(4) and 8(6).

Five exceptions to the three-year absence rule (section 28(c)(ii)). The following periods do not count towards the three years: (1) residence abroad in the service of the State; (2) residence abroad as a representative or employee of a person or body resident or established in South Africa; (3) residence abroad in the service of an international organisation of which South Africa is a member; (4) the spouse or dependent children of the above persons residing with them; (5) the spouse or dependent children of a South African citizen residing with them. In addition: the Director-General may, on good cause and on prior application, extend the period in an individual case (s 28(c)(i)); and the Minister may exempt a particular resident or class of residents from the residence requirement (s 28(c)(iii)).

Section 28(c)(iv): a period of absence "may only be interrupted by an admission and sojourn in the Republic". The text reads "may only be interrupted by an admission and sojourn in the Republic". But how long the "sojourn" must be is not specified in the provision, and there is no official guidance. "Come back for two days to reset the three years" is a widely circulated claim, but it has no legal basis. Permanent-residence holders who are away from South Africa for long periods should keep a complete record of each entry and stay, and should consider applying for an extension in advance.

Three provisions that really are "automatic lapse"

Lapse and withdrawal differ in legal character: a lapse requires no notice or decision at all and takes effect the moment the condition is fulfilled, which is why it is also difficult to appeal directly under section 8.

Part 8 — After a refusal: two levels of internal remedy, 10 working days each

• s 8(3) — the decision must be accompanied by reasons: any decision that materially and adversely affects a person's rights must be communicated in the prescribed manner, together with the reasons for that decision. Inadequate reasons may in themselves constitute a ground for review under PAJA.
• s 8(4) — first level: application to the Director-General for review / appeal: to be lodged within 10 working days of receipt of the notification, using Form 49. The Director-General must consider it, and confirm, reverse or modify the decision (s 8(5)).
• s 8(6) — second level: application to the Minister for review / appeal: to be lodged within 10 working days of receipt of the Director-General's decision, likewise using Form 49. The Minister must consider it and make a decision (s 8(7)).
• PAJA — judicial review once internal remedies are exhausted: brought to the High Court under the Promotion of Administrative Justice Act 3 of 2000. Common grounds of review include inadequate reasons, taking irrelevant considerations into account, and applying a legal requirement that does not exist.

Home Affairs service standards. First-level appeal 180 days; second-level appeal up to 240 days. In practice, cases that sit past the deadline with no movement are not uncommon, in which event a written demand is usually required, and if necessary a mandamus (order compelling performance) to move matters along.

Part 9 — Reforms in the pipeline: know the direction, but do not plan around it

The White Paper timeline:

• December 2025 — The revised White Paper was published for comment. The draft revision of the "White Paper on Citizenship, Immigration and Refugee Protection" was published.
• 26 March 2026 — Cabinet approved the final White Paper. Its core is the points-based system and the "first safe country principle", with an additional citizenship advisory panel and an annual application window.
• Proposed direction — impact on permanent residence and investment visas: (1) it is proposed to replace the current financially-independent permanent residence with an "investment-based residence visa", linked to investing within South Africa and holding for a fixed period; (2) the retirement visa is to introduce an age threshold (there is currently no age limit), and to raise the annuity requirement in line with the cost of living; (3) the business visa is to become an investment visa, with local / foreign employment quotas and a capital threshold adjusted periodically by Gazette; (4) a separate start-up visa is proposed; (5) it is proposed to replace the general-work and critical-skills categories with a single skilled-worker visa; (6) the spouse on a relative's visa is to be permitted to work, do business and study (currently prohibited).
• Current status — still a policy document, not yet law: the next step is for Home Affairs to draft an amending bill and submit it to Parliament. As at the date this article was checked, no bill amending s 26 or s 27 has been submitted or passed.

What this means for applicants currently planning. The current law remains the only law in force. But if your planning horizon spans two or three years — for example, "take a retirement visa first, then convert to permanent residence after five years" — then the two possibilities that the retirement visa may introduce an age threshold and that financially-independent permanent residence may be replaced by an investment-based residence are worth building into your risk assessment. Completing an application before the regime changes tracks is usually far less onerous than adapting to a new one afterwards.

A permanent-residence application is, in essence, an argument about "why you deserve to stay". The amounts and the years are merely its premises; what really decides success or failure is whether that argument is presented completely, and in a way the decision-maker can accept.

Disclaimer: This article is general legal information prepared on the basis of the Immigration Act 13 of 2002, the Immigration Regulations 2014, and the Government Gazettes and Home Affairs directives published up to 24 August 2026. It does not constitute legal advice on any specific matter and does not create an attorney-client relationship. Immigration regulations, fees and processing times change frequently, and practice varies between reception centres; before submitting a formal application, be guided by the latest checklists published by the Department of Home Affairs (DHA), the South African missions in China and the VFS Global reception centres, or seek advice on your specific matter from an admitted attorney.

June Luna Immigration Attorneys Inc.
Cape Town — specialists in immigration and administrative law
Visa applications · refusal appeals (s 8(4) / s 8(6)) · overstay relief (s 32) · permanent residence and naturalisation · PAJA judicial review